Question # 1

"Economics is what economists do " It has been supported by.

Choose an answer

Richard jones

Comte

Gunnar Myrdal

All of the above

A temporary decrease in government purchases would cause.

Choose an answer

A rightward shift in the saving curve and a leftward shift in the investment curve

A rightward shift in the saving curve and a rightwards shift in the investment curve.

A right ward shift in the saving curve but no shift in the investment curve

No shift in the saving curve but a left ward shift in the investment curve.

Which of the following results in an increase in the value of the dollar.

Choose an answer

Interest rates n the united states decrees, ceteris paribus

Interest rates in foreign countries increase, ceteris paribus

Price level in the United States increases, ceteris paribus

Productivity in the united states increases, ceteris paribus

The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.

Choose an answer

Foreign capital flows to the U.S.

The U.S. dollar appreciates

Real net exports decline

American real GNP experience a slower rate of growth

When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.

Choose an answer

Rs. 100

Rs. 400

Rs.500

Rs.1000

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.

Choose an answer

Romaic's in balnce

Has a surplus

Has a deficit

None of these

The expected real interest rate minus expected inflation rate.

Choose an answer

Nominal interest rate minus inflation rate

Nominal interest rate minus expected inflation rate.

Expected nominal interest rate minus inflation rate

Nominal interest rate plus expected inflation rate.

If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.

Choose an answer

2.36

0.42

1.20

0.96

Which of the following solutions does the economist suggest to cost inflation in higher education.

Choose an answer

Cutting professor salaries

Make students live at home

Reduce college from four to three years

B and C

The risk free rate of interest would not be affected by.

Choose an answer

Changes in real output

Change in the money supply

Term to maturity

None of the above

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

Choose an answer

Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it because the user cost of capital is now higher

A nation experience external balance if it achieves.

Choose an answer

No net changes in its international gold stocks

Productivity levels equal to those of its trading partners

An increases in its money supply equal to increases overseas

Equilibrium in its balance of payments

Full- employment output is the level of output that firms in the economy supply when

Choose an answer

Taxes are zero

Wages and prices have fully adjusted

The unemployment rate in zero

All capital is fully utilized

An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.

Choose an answer

Discourse

Federal funds

Reserves

Collateral

The appropriate expenditure switching policy to correct a balance of payments deficit is.

Choose an answer

Contractionary monetary policy

expansionary fiscal policy

Currency devolution

Currency revaluation

The long run aggregate supply curve.

Choose an answer

Is vertical

Slopes upward

Is horizontal

Slopes downward

An increase in the expected rate of inflation would.

Choose an answer

shift the Philips curve upward

shift the phillips curve downward

Shift the long -run phillips curve to the right

Shift the long-run phillips curve to the left

Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i

Choose an answer

Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it beacause the user cost of capital is now higher

Which of the following is the most liquid.

Choose an answer

A savings account

A 6 months CD

A home

Water

The fraction of additional current income that a person consumes in the current period is known as the

Choose an answer

Consumption smoothing motive

Consumption deficit

Saving rate

marginal propensity to consume

An expenditure increasing policy would consist of an increase in

Choose an answer

Import tariffs

Import quotas

Governmental taxes

The money supply

More Classes

Other Links

PPSC Economics Chapter 3 Macro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer